v3.26.1
Segment and Geographic Information
 3 Months Ended
Jul. 31, 2026
Segment Reporting [Abstract]  
Segment and Geographic Information Segment and Geographic Information
The Company had changes to its reportable segments during the fourth quarter of fiscal year 2026. Although the Diabetes Business did not historically meet the quantitative thresholds to be considered a reportable segment, the Company has historically presented the Diabetes Business as a reportable segment because management deemed the information useful to investors. As a result of the MiniMed IPO, management no longer believes segment information about the Diabetes Business is useful to investors given the temporary nature of ownership as the Company has stated its intent to divest its remaining interest in MiniMed within fiscal year 2027 and the lack of strategic significance to ongoing operations. The Diabetes Business operating segment results are aggregated with the Other operating segment within the reconciliations below. Additionally, during the first quarter of fiscal year 2027, a product line moved from the Medical Surgical Portfolio to the Neuroscience Portfolio. Prior period information has been recast to conform to the current year presentation.
Since the fourth quarter of fiscal year 2026, the Company has three reportable segments: Cardiovascular Portfolio, Neuroscience Portfolio, and Medical Surgical Portfolio. The chief operating decision maker (CODM) is our Chief Executive Officer (CEO) and has chosen to organize the entity based upon therapy solutions provided by each segment. The three reportable segments are strategic businesses that are managed separately, as each one develops and manufactures products and provides services oriented toward targeted therapy solutions.
The CODM measures and evaluates segment performance and allocates resources based on net sales and segment operating profit. Net sales include end-customer revenues from products developed, manufactured, and distributed by the segments. Significant expense categories include cost of products sold excluding amortization of intangible assets, research and development expense, and selling, general, and administrative expenses. The CODM uses segment operating profit in the budget and forecasting process and to monitor budget and forecast variances versus actual when assessing segment performance and allocating capital resources to each segment.
Segment operating profit excludes interest income and expense, amortization of intangible assets, currency impact of remeasurement and hedging recorded in other operating expense (income), net, non-operating income or expense items, and other items not allocated to the segments.
The accounting policies of the segments are the same as those described in the summary of significant accounting policies in Note 1 to the consolidated financial statements included in the Company's Annual Report on Form 10-K for the fiscal year ended April 24, 2026. Certain depreciable assets may be recorded by one segment, while the depreciation expense is allocated to another segment. The allocation of depreciation expense is based on the proportion of the assets used by each segment. The CODM is not regularly provided with expenditures for additions to long-lived assets.
The following tables present reconciliations of financial information from the segments to the applicable line items in the Company's condensed consolidated financial statements:
Segment Operating Profit
Three months ended July 31, 2026
(in millions)CardiovascularNeuroscienceMedical SurgicalTotal
Net sales$3,927 $2,678 $2,279 $8,884 
Reconciliation of revenues
Other operating segments net sales(1)
872 
Total consolidated net sales$9,756 
Less:
Cost of products sold, excluding amortization of intangible assets1,308 786 919 3,013 
Research and development expense303 163 189 656 
Selling, general, and administrative expense1,269 922 681 2,872 
Other segment items(2)
14 13 5 32 
Reportable segment operating profit$1,033 $793 $485 $2,311 
Reconciliation of segment profit / (loss)
Other operating segments profit(1)
74 
Currency and other (69)
Interest expense, net(186)
Other non-operating expense (income), net190 
Amortization of intangible assets(412)
Restructuring and associated costs(89)
Acquisition and divestiture-related items(50)
Income before income taxes$1,769 
Three months ended July 25, 2025
(in millions)CardiovascularNeuroscienceMedical SurgicalTotal
Net sales$3,285 $2,427 $2,073 $7,785 
Reconciliation of revenues
Other operating segments net sales(1)
755 
Other adjustments(3)
39 
Total consolidated net sales$8,578 
Less:
Cost of products sold, excluding amortization of intangible assets1,132 724 812 2,668 
Research and development expense280 157 169 606 
Selling, general, and administrative expense1,060 831 605 2,497 
Other segment items(2)
(15)2 1 (12)
Reportable segment operating profit$828 $713 $486 $2,027 
Reconciliation of segment profit / (loss)
Other operating segments profit(1)
37 
Currency and other(47)
Interest expense, net(176)
Other non-operating expense (income), net33 
Amortization of intangible assets(459)
Restructuring and associated costs(67)
Acquisition and divestiture-related items(58)
Certain litigation charges, net(27)
Other adjustments(3)
39 
Income before income taxes$1,302 
(1)Includes the operations and ongoing transition agreements from businesses the Company has exited, divested, or intends to separate, including the Diabetes Business.
(2)Other segment items for the Cardiovascular, Neuroscience, and Medical Surgical segments include royalty expense. The Cardiovascular segment for both periods also include income from funded research and development arrangements.
(3)Includes adjustments to the Company's Italian payback accruals resulting from the June 30, 2025 Legislative Decree published by the Italian government for years 2015 to 2018.
Total Assets and Depreciation Expense
Total AssetsDepreciation Expense
As of Three months ended
(in millions)July 31, 2026April 24, 2026July 31, 2026July 25, 2025
Cardiovascular$17,517 $17,553 $71 $64 
Neuroscience19,942 18,514 78 77 
Medical Surgical31,905 32,535 65 54 
Total reportable segments69,364 68,602 215 194 
Other operating segments(1)
4,747 4,827 34 31 
Corporate19,195 19,598 69 64 
Total$93,306 $93,028 $317 $289 
(1)Includes the operations and ongoing transition agreements from businesses the Company has exited, divested, or intends to separate, including the Diabetes Business.
Geographic Information
Net sales are attributed to the country based on the location of the customer taking possession of the products or in which the services are rendered. The following table presents net sales for the three months ended July 31, 2026 and July 25, 2025 for the Company's country of domicile, countries with significant concentrations, and all other countries:
Three months ended
(in millions)July 31, 2026July 25, 2025
Ireland$40 $33 
United States 4,906 4,224 
Rest of world4,810 4,321 
Total other countries, excluding Ireland9,716 8,545 
Total$9,756 $8,578